GoLearnForex Daily Technical Analysis

AUD/USD:

The AUD continues its recent retrace.  Many traders use different time frames for different currency pairs.  The longer the time frame the more valid the pattern you are charting is.  Moving Averages are basic tool that even the most sophisticated trader needs to always be cognizant of.  The markets tend follow the moving averages generated off of the daily charts.

In Chart below I use a moving average from an 8 hour chart.  I strongly encourage traders to be vigilant of at least checking a weekly, daily, 8 and or 4 hour chart and then any time frame less than 4 hours that you may want to look at.

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You can see that the yellow line representing the SMA 50 was breeched and prices continued a steady fall (The Red line is the 100 SMA).  There are also a number of near candle formations that support this price depreciation.

Circled in blue is a near Falling Three Candle pattern.  Typically you have a red candle followed by 3 or so small green candles that are contained by the original red candle.  Following the last green candle is another red candle with price closing below the original red.  The Falling Three pattern is nearly followed by Three Black Crows.  This candle pattern forms when you have the candles each open in the midsection of the proceeding candle but also close lower than the proceeding candle.  This pattern nearly forms between the 2 white lines.

GBP/USD:

This pair has been range bound since May.  When a pair trades in a range, price is confined to a narrow margin of highs and lows.  In the Chart below the 2 red lines represent the range support and resistance lines.

The 2 red boxes indicate when minor breakouts have occurred.  The tops and bottoms of the boxes would be your absolute stops depending on the handle you entered the trade at.  Another point of consideration is the 50 SMA and 100 SMA.  You can see that the SMA’s are also moving sideways.  Price typically pops when it passes above/below a significant SMA.  With SMA moving into a sideways march we are approaching congestion on this pair and that should signal another breakout.  Obviously if the dollar continues to strengthen as it has GBP should be headed south.

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Analysis by http://www.golearnforex.net

Tags: daily forex analysis, forex analysis

Trouble-free Forex trading techniques

According to many experts one of the certain ways to get success in currency trading is to know and implement Forex trading techniques. Using Forex techniques have the great benefit in trading business. Forex trading business is really a wonderful and dynamic investment avenue. You do not need to understand and grasp such kind of trading if you wish to make your business grow from it.

In this article we will discuss some Forex trading techniques. To start with, such trading strategies are very special and are graphic processes of trading designed as well as implemented with the principal goal of making great income or revenue. If we compare Forex trading with other trading businesses, in Forex trading you need to know and execute appropriate working techniques to earn a lot. Hence, it would be very helpful when you get familiar with a number of simple still proven efficient Forex trading techniques.

The first Forex trading technique is purchasing low and selling high. In general this is the principal that must be practiced. Through this Forex investors must always make every effort to purchase currencies, which have lower values than what you’re your currency form. Therefore, you should realize that you are making your capital evaluation right away. Then you must also wait for sometime that currency appreciates and when it does, it must be perfect time to sell it that would return your money into your base currency in higher value.

Another simple to follow Forex trading technique is converting your capital into United States dollar as a base currency. You must stick to it however, otherwise it is advisable that to convert it into dollar. From there you are able to convert it into other currencies easily. Almost all the currencies have direct dollar conversation rate that makes it easy for Forex traders to decide and run transactions.

Finally, trade currency is based on the market as well as economic factors. This kind of technique makes use of the value of research of the factors and risks of the particular countries economy. For instance, if you wish to trade into Japanese Yen then it will be helpful if you first understand what is happening in the business environment of Japan. In this way, you can easily predict if your rehabilitated money will rise or fall.

As a Forex investor, it must always be your aim to grow your capital. You need to know and use efficient Forex trading techniques to earn huge profits in Forex trading business. By using these Forex trading techniques, your money will surely attain its actual enlargement prospective in no time. Before learning Forex trading techniques, you need to learn Forex trading basics to learn about Forex trading business.

Tags: Forex Trading, fx trade, Trading Forex

Daily Review

USD Dollar (USD)

The Dollar rose across the board. A rise in risk aversion following an unexpectedly drop in New Home Sales sent stocks lower worldwide. The Dow Jones fell for the 4th consecutive session and ended at 9,763.The Standard & Poor’s 500 Index dropped 2% on concern a rally in equities this year outpaced the prospects for economic growth. New-home sales unexpectedly fell last month to an annual rate of 402K, from a revised 417K pace in August. Crude oil fell from $79 a barrel to $77.20 on stronger Dollar. Gold (XAU) continues to move away from the highs of the year and fell to test levels below $1,030 an ounce. Today, The Gross Domestic Product (GDP) is expected at 3.1% vs. -0.7% previously. The Initial Jobless Claims are expected at 520K vs. 531K previously.

EURO (EUR)

The Euro kept weakening versus the Dollar for the 4th day in a row. The currency slumped against Dollar and Yen, reaching a 2 week low against both safe havens. The German Consumer Price Index (CPI) came out as expected at 0.1%. Overall, EUR/USD traded with a low of 1.4690 and with a high of 1.4840. Today, The German Unemployment Change is expected with 15K vs. -12K previously. The German Unemployment Rate is expected at 8.3% vs. 8.2% previously.

EUR/USD – Last: 1.4700

British Pound (GBP)

The Pound failed to hold above 1.6400 versus the Dollar finding support only at 1.6360 following economic data in the U.S and Dollar\’s strength. GBP/USD peaked at the highest price for the current week but it was unable to hold versus the strengthening Dollar. Overall, GBP/USD traded with a low of 1.6285 and with a high of 1.6466. Today, Net Lending to individuals is expected unchanged at 0.7B. The Mortgage Approvals also expected unchanged at 52K.

GBP/USD – Last: 1.6368

Japanese Yen (JPY)

The Yen rose sharply versus most majors as weak economic data sent world stocks lower fueling risk aversion. The Yen reached the highest in 2 weeks against the Euro amid signs the global economic recovery is losing steam, damping demand for higher-yielding assets. Industrial Production came out 1.4%better than 1.1% expected. Overall, USD/JPY traded with a low of 90.54 and with a high of 91.80. Today, Household Spending is expected lower with 1.2% versus 2.6% and Tokyo Core CPI is expected with -2.0% versus -2.1% prior.

USD/JPY-Last: 90.42

Canadian dollar (CAD)

Canada’s currency depreciated against its U.S. counterpart to the lowest level in more than three weeks as declines in crude oil, the nation’s largest export, and stocks damped demand for higher-yielding assets. Overall, USDCAD traded with a low of 1.0636 and with a high of 1.0810. Today, The Raw Materials Price Index (RMPI) is expected at 1% vs. 3.7% previously.

CAD/USD – Last: 1.0790

Research by http://www.ufxbank.com

Tags: Daily Forex Review, forex review